In order to get a better understanding of people’s sentiments, analytics have created a tool or an index that is called Crypto Greed and Fear Index. The main purpose of this index is to quantize the sentiments taken from Social Media, momentum, volume, and other different variables and rank them out of 100.
When the index is closer to 1, it means there is fear in the market. When the index is closer to 100, it means there is greed in the sentiments, and people are looking at higher-ups in the movement.
Currently, today, the Index is at 11 which shows that there is extreme fear in the market. Last month, the index was even lower when it was residing at 10/100. Since then the index has never gone higher than 20 and the maximum it went was around 17 which was yesterday.
This means that the people are fearful about the current market conditions and that they are afraid that they might lose their investments if they get in now.